LANSING, MI -- A pending proposal to send at least $195 million in state money to Detroit as part of a "grand bargain" bankruptcy settlement will work its way through a new committee in the Michigan Legislature.

House Speaker Jase Bolger (R-Marshall) on Tuesday announced formation of the Committee on Detroit's Recovery and Michigan's Future, which is expected to debate legislation set to be introduced as soon as this week.

"As the House considers support to help resolve Detroit's bankruptcy and secure its recovery, we need to ensure taxpayers statewide are protected and Detroit's success is assured," Bolger said in a statement. "We are putting a strong team in place to resolve this difficult issue today with a vision for a bright future."

Walsh has played a key role in crafting legislation that would pave the way for a state contribution in Detroit's bankruptcy plan. The pending legislation is also expected to require long-term oversight of Detroit finances.

"Detroit is still a driver of economic activity in the Great Lakes region and its failures and successes impact all of Michigan," Walsh said in a release. "We are taking action to ensure its bankruptcy is a new beginning rather than an end. We will bring ideas to the table and vet those ideas through a transparent committee process, and find the best solution to protect taxpayers."

Michigan Gov. Rick Snyder originally proposed sending $350 million to Detroit over 20 years as part of a "grand bargain" designed to minimize pension cuts for retirees and prevent a fire sale at the Detroit Institute of Arts. Philanthropic organizations have already pledged $336 million, and DIA donors are expected to kick in another $100 million.

The city's latest plan of adjustment, filed in bankruptcy court this week, includes a draft "state contribution" indicating the state could instead send a smaller one-time payment -- a $194.8 million lump sum -- as requested by pension funds.

Bolger also has called on unions to contribute to the "grand bargain," suggesting he may hold off on any floor vote unless or until they do so.